The broker exodus: Why our industry numbers are in freefall – Flavin

The stark reality facing our profession is laid bare in the latest figures: from a peak of 35,347 advisers in 2023, we've witnessed an alarming 11% contraction to 31,524 in 2024.

This isn’t market volatility – it’s structural decline that threatens the very fabric of mortgage intermediation in the UK. 

 

The grey wave crisis 

Our industry is ageing out, and we’re not replacing ourselves fast enough. Walk into any broker network meeting and count the heads under 35 – they’re increasingly rare. While fintech and wealth management firms compete aggressively for graduate talent with slick recruitment drives and modern working practices, we’re still operating like it’s 2005. 

The CeMAP barrier, while maintaining professional standards, has become an unintended filter against digital natives who expect streamlined, app-based learning pathways. These are professionals who could bring fresh thinking to client acquisition and process automation, but they’re choosing sectors that don’t require months of study before earning their first commission. 

 

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The lifestyle business ceiling 

We need to confront an uncomfortable truth about our industry structure. Too many of us have optimised for personal comfort rather than sectoral growth. The successful sole trader model – comfortable six-figure earnings, flexible hours, minimal overheads – has become a strategic dead end for the industry. 

These micro-practices, while individually profitable, create knowledge silos that evaporate when practitioners retire. They don’t invest in junior talent, rarely adopt new technology, and operate within established referral networks that limit market expansion. It’s a sustainable personal business model that’s unsustainable for the industry. 

The irony is stark: our individual success is contributing to collective decline. Every broker who builds a lifestyle practice rather than a scalable business is essentially hoarding market share that disappears upon their retirement. 

 

The five-year disruption 

The shift to longer-term fixes has fundamentally broken our revenue model. When five-year products grew from 15.6% to 52% of the market over 2016-22, we lost the predictable two-year remortgage cycle that underpinned most practices’ cash flow. 

The mathematics are brutal: clients who previously generated commission every 24 months now represent income every 60-plus months. For commission-dependent businesses, this extended cycle has created feast-or-famine scenarios that many couldn’t weather.

The 57% of mortgages renewing in 2023 at sub-2% rates were predominantly five-year products from the 2019-21 ultra-low rate environment – a cohort we won’t see again until 2024-26. 

This timing shift hasn’t just impacted income; it’s severed the regular client touchpoints that built relationships and generated referrals. We’ve inadvertently moved from a relationship business to a transactional one. 

 

Market evolution vs industry adaptation 

While our market share grows, our numbers shrink – a paradox that reveals industry consolidation rather than expansion. Intermediary market share rising from 84% to 89% in 2024, with 90%-plus forecast for 2025, should be cause for celebration. Instead, it highlights that existing brokers are absorbing larger caseloads rather than the industry expanding its talent pool. 

The rise in product transfers, combined with direct-to-lender digital platforms, has compressed margins while increasing volume expectations. We’re working harder for the same or reduced returns, a sustainability model that particularly impacts smaller practices. 

 

Competitive threats and opportunities 

Technology isn’t just changing how we work – it’s redefining whether clients need us at all.

Automated valuation models (AVMs), artificial intelligence (AI)-driven affordability assessments and streamlined application processes are commoditising basic mortgage origination. Our value proposition must evolve beyond simple product comparison to complex case management, financial planning integration, and ongoing client relationship management. 

The opportunity lies in the complexity that technology can’t yet handle; adverse credit, portfolio landlords, later life lending, and bespoke commercial arrangements.

But capitalising on this requires investment in specialist knowledge and systems that many lifestyle businesses can’t or won’t make. 

 

The path to recovery: attracting the next generation 

Our industry needs radical restructuring, not gentle evolution. This means confronting some uncomfortable realities about how we operate while actively solving the talent pipeline crisis. 

 

Modernising the entry route 

The CeMAP qualification needs a complete overhaul for the digital age.

Instead of months of studying, we need modular, app-based learning with bite-sized content that fits modern attention spans. Gamification, video content, and interactive case studies would make the qualification process engaging rather than endurance-based. 

Consider apprenticeship programmes that combine earning with learning – letting graduates start on basic administration while studying, with clear progression milestones. Major networks should partner with universities to create mortgage-specific degree pathways or conversion courses that fast-track finance graduates into our sector. 

 

Rethinking compensation and career structure 

Young professionals expect clear career progression, not just commission uncertainty. We need to move beyond the sink-or-swim model where new entrants either make it big or crash out entirely. 

Successful practices should implement trainee adviser roles with guaranteed base salaries, structured mentoring, and commission sharing that increases with competency. Create associate adviser positions where experienced practitioners share their client bank with junior colleagues – building relationships while developing skills. 

The bigger networks need to establish proper graduate programmes with rotations through different specialisms: first-time buyers, later life lending, commercial mortgages, and buy to let (BTL). This gives new entrants breadth of experience and helps them find their niche. 

 

Leveraging technology to attract tech-savvy talent 

Make technology a selling point, not a barrier. Young professionals are drawn to sectors that embrace innovation. Practices using AI for initial fact finds, automated compliance checking, and CRM systems that actually work will appeal to graduates who expect seamless digital experiences. 

Create roles that combine traditional advisory skills with tech expertise – client experience managers who handle digital onboarding, data analysts who optimise conversion rates, or social media specialists who generate leads through content marketing. These hybrid roles attract candidates who might never consider traditional brokering. 

 

Building scalable business models 

We need to abandon the myth that every good adviser should aspire to a solo practice. Successful sectors build hierarchical structures where senior practitioners mentor and develop junior talent, creating career progression and knowledge transfer. 

The most successful future practices will operate like mini banks: senior partners handling complex cases, associate advisers managing standard applications, paraplanners doing research and compliance, and business development managers generating leads. This structure provides entry points at multiple levels and clear advancement paths. 

 

University and professional partnerships 

Partner with business schools to make mortgage broking visible as a career option. Most graduates don’t even know our profession exists.

Regular campus visits, internship programmes, and guest lectures would raise awareness among finance and business students. 

Professional bodies should work with careers services to position mortgage advice as a stepping stone to broader financial services careers. Frame it as entrepreneurial finance rather than just sales – emphasising the business ownership opportunities and client advisory aspects. 

 

Marketing the profession properly 

Stop selling the lifestyle and start selling the opportunity. Young professionals aren’t motivated by “work from home in your pyjamas” – they want meaningful work, skill development, and financial success.

Highlight the problem-solving aspects, the variety of clients and situations, and the genuine impact on people’s lives. 

Create success stories featuring young brokers who’ve built significant businesses, not just comfortable lifestyles. Show the progression from trainee to practice owner, emphasising the entrepreneurial and advisory skills developed along the way. 

 

Industry-wide initiatives 

The major networks and professional bodies need to coordinate recruitment efforts. Individual practices can’t solve this alone – it requires sector-wide investment in talent pipeline development. 

Establish industry-funded training academies that guarantee placement for graduates. Create cross-network mentoring programmes where experienced brokers from different firms share knowledge. Develop industry-standard progression frameworks that make career paths transparent. 

Most critically, we need to think beyond the next commission and start building for the next generation. This means established practitioners actively investing in junior talent, even if it means sharing commission in the short term for long-term succession planning. 

The 2025 market upturn presents a window of opportunity, but only if we use it to address structural weaknesses rather than simply riding the wave. Without fundamental change, the 11% decline in 2024 will be remembered as the beginning of a managed retreat rather than a temporary setback. 

Our profession stands at a critical juncture: invest in the next generation now or watch the talent pipeline dry up completely. 

 

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